IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 4 2025
DOI: 10.56201/jafm.vol.11.no4.2025.pg114.139

---

Payroll Fraud in Nigeria Public Service: Its Evaluation and Nexus with the Efficiency of the Service

Chima, Christian Chukwuka; Agusimba Samuel Ndubuisi & Anumaka, Chikaodi Josephine Michael Wisdom Nwaguru

---

Abstract

This paper examined the alleged perversion of public funds through payroll system and its nexus with the efficiency of the service. The study gathered secondary data from the published official records of various government-commissioned verifications on payroll and salary administration in the public service, which were empirically evaluated. To complement this data were also garnered from the responses on the 30-item structured questionnaire administered on many stakeholders across the five (5) Eastern States along the following

keywords:

Payroll fraud, public service, forensic, ghost worker, salary, wage.

---

References:

Abdullahi, R.M., & Mansor, N. (2015). Fraud Triangle Theory and Fraud Prevention in
Nigerian Deposit Money Banks. Journal of Economics and Finance, 6(2), 145-155.
Akande, A.A. (2019). Financial Control System Innovations and Payroll Fraud
Management in Developing Economy. International Journal of Scientific &
Engineering Research, 10(12), 1008-1018.
Akwu, A.U., Unanam, W.J., &Okon, U.I. (2021). Government Policies and Performance of
the Public Sector: A Critical Appraisal of Integrated Payroll and Personnel
Information System (IPPIS) Policy. International Journal of Public Administration
and Management Research, 6(5), 21-30.
Appah, E. &Appiah, K.Z.A. (2010). Fraud and Development of Sound Financial
Institutions in Nigeria. Nigeria Journal for Development Research, 1(1), 49-56.
Arowolo, D.A., Dahunsi, O.O., & Ojika, S.A. (2021). Integrated Personnel and Payroll
Information System (IPPIS) in Nigeria. A critical appraisal. SAGE – Open, 11(1),
2158244021990 494
Binns, C.A. & Kempt, R.J. (2020). Background Checks: the theories behind the process.
Security Journal, 34(1), DOI: 10.1057/S41284. 020-00260-4
Chima, C.C. (2014). Centralized Payroll System in the Public Service: Issues, prospects
and problems. Being paper delivered at a training workshop for Accountants in the
lmo State Public Service, August
Chima, C.C. (2017). Cash Resources Management in the Public Sector – The Treasury
Single Account (TSA) Paradigm. Proceedings of 1st National Conference of ASUP Imo
State Polytechnic Chapter held at Entrepreneurship Centre, Imopoly, 822-834.
Chavis, J. &Barrum, B. (2012). Applied forensic Accounting-Experiences from Papau
New Guinea Financial Intelligence Unit. National Forensic Accounting Teaching and
Research Symposium 2012 – (RC). Defining the forensic accountant, merging practice,
research and education.
Dada, S.O. (2014). Forensic Accounting Technique: A Means of Successful Eradication
of Corruption Through Fraud Prevention, Bribery Prevention and Embezzlement
Prevention in Nigeria. Kuwait Chapter of Arabian Journal of Business and
Management Review, 4(1); 176-186.
Dorminey, J.F., Kranacher, M. & Riley, R.A. (2012). The Evolution of Fraud Theory. Issues
in Accounting Education. 27(2), 555-679.
Etale, L.M. & Pouzigba, Y.A. (2020). Effect of Electronic Payment Systems on Payroll
FraudPrevention in Selected Ministries in Bayelsa State. International Journal of
Academic Research in Accounting, Finance and Management Sciences, 10(3), 38-51
Folorunso, O.O. & Simeon, A.O. (2021). The Gains and the Pains of Integrated Payroll
and Personnel Information Systems (IPPIS) Policy Implementation in Nigeria.
Journal of Human Resource and Sustainability Studies, 9, 551-569
(https://doi.org/10436/jhrss.2021.9 4035)
Godwin, P. (2020). Employee welfare packages and the performance of public
organizations in Rivers State, Nigeria. European Journal of Research and
Reflection in Management Sciences, 8(2), ISSN 2056-5992.
Jibrin, M.S., Ejura, S.B. & Nwaorgu, I.A. (2015). System of Payroll in the Public
Sector Administration. Asian Development Policy Review, 3(1), 9-19
https://www.deel.com
Institute of Internal Auditors (IIA). (2022). Fraud Awareness and Prevention: A Guide for
Internal Auditors. IIA.Kalu, G.U., & Ogali, M.D. (2021). Productivity, a Mirage in Civil Service in Nigeria:
A Study of Abia State Civil Service. International Journal of Academic
Multidisciplinary Research, 5(4), 113-119.
Kaoje, et al, (2020). Integrated Personnel and Payroll Information System (IPPIS)
and Transparency in Government Payroll Administration in Nigeria Civil Service:
A unique approach. Asian Journal of Economics, Business and Accounting, 19(3), 1-
8.
Kassem, R. & Higson, A. (2012). The new Fraud Triangle Model. Journal of Emerging
Trends in Economics and Management Sciences (JETEMS), 3(3), 191-195.
Kauji, M.B. & Mustapha, B. (2019). Assessment of the Efficacy of Benford’s Law in
Detecting payroll fraud in Bornu State, Nigeria. International Journal of
Economics, Finance and Entrepreneurship, 6(1), 14-27
Kiragu, K. &Mukandala, R. (2013). Tactics sequencing and politics in Developing Countries:
Lessons from Sub-Sahara Africa, Draft Report.
Marasco, J. (2007). Fraud matters. Retrieved from
https://stonebridgebp.com/library/uncategorized/payroll-fraud-how-its-done-how-toprevent-it.
Micah, L.C., & Moses, T. (2018). IPPIS and the Ghost Workers Syndrome in Nigeria’s Public
Sector. Scholars Journal of Economics, Business and Management. 5 (8), 773-778
Nnanta, N. E. &Eme, O. I. (2013). An Analysis of Computerized Accounting and
Payrolling System on Monthly Emoluments in Nigerian Local Government.
International Journal of Accounting Research, 1(3).
Obara, L.C., Nangih, E. &Agba, J.N. (2017). Accounting Systems and Payroll Fraud in the
Public Sector: A Survey of Selected Ministries and Parastatals in Rivers State, Nigeria.
Journal of Accounting and Financial Management, 3(2), ISSN 2504-8856
Obiah, M.E. & Obiah, N.L. (2018). Auditingand Fraud Risk Management for Green Growth.
Onitsha: Orjison Serial Concept.
Oguzierem, U.A., & Sofiri, J. (2017).Ghost Workers and Related Payroll Fraud: The Impact
of Unauthorized Employment on Local Government Areas (LGAs) & Rural
Development Areas (RDAs) in Bayelsa State. International Journal of
Economics and Business Management, 3(8), ISSN 2489-0065.
Okagu, F.I., Obeta, R.U. & Thomas, F.C. (2020). The Plague of Payroll Fraud in Local
Government Administration in Nigeria. International Journal of Innovative Legal
& Political Studies, 8(2), 22- 30
Onuoha, B (2018). Ghost workers in public service account for over 60% of the
workforce. Retrieved from:https://www.vanguardngr.co m/2018/04/ghostworkers-public- service-account-60-workforce/
Omilusi, M. (2019). The Plague of “Ghost Workers”: Interrogating Payroll Fraud and
Executive-Bureaucratic conspiracy in Nigeria. Journal of Policy and
Development Studies, 12 (1), DOI: 10.12816/0047552.
Owolabi, S.A., Dada, S.O., & Olaoye, S.A. (2013). Application of forensic Accounting
Technique in Effective Investigation and Detection of Embezzlement to
Combat Corruption in Nigeria. Unique Journal of Business Management
Research, 1(4), 065-070- world-com December 12.
Shaibu, K., & Mohammed, A. (2016). Electronic Payment System & Challenges
in Gombe State: Evidence from the office of the Accountant-General of
Gombe, Nigeria. Journal of Humanities and Social Science, 21(4), Ver 06.Shimawua, D. (2020). Appraisal of Factors Responsible for Ghost Workers Syndrome
in Public Service and its Impact on the Performance of the Sector in Nigeria.
International Journal of Scientific Research in Technology, Applied Science &
Health Studies. 4(1), 72-85
Stanclu, V. (2012). Fraud: A Growing Problem. Can We Mitigate it? Annals of
Alexander loan Cuza University – Economics, 59 (1), 79-94.
Sule, O.E., Amuni, S.I., Obasan, K.A; & Banjo, H. A. (2015). Wages and Salaries as
motivational tool for enhancing organizational performances; a survey of
selected Nigerian Workplace. Euro Economic, Issue 1(34); ISSN 1582-
8859
Sule, O.E., Amah, E. &Alagah, D.A. (2022). Green Employee
Empowerment/Engagement and Non-Financial Corporate performance in
Deposit Money Banks of South-West, Nigeria. Journal of La Bisecoman,
02(06) (047-056).
Templers Law (2018). The Relevance of Payroll Control to Fraud Prevention in the Payroll
System. Retrieved from https://www.templers-law.com
Umar, N. & Bappi, U. (2023). Financial Sector Reform and Payroll Fraud in Nigeria: Issues
and Challenges. Al- Hikmah Journal of Arts & Social Sciences Education 5(2).
Wikipedia (2019). Fraud. Retrieved from: https://en.wikipedia.org/wiki/fraud.
Wolfe, D. &Hermanson, D.R. (2004). The Fraud Diamond: considering four elements of
fraud. The CPA Journal, 74, 38-42. Retrieved from https://doi.org/10.1016/s1361-
3724(04)00065-x
World Bank (2018). Nigeria Public Governance Reform and Development

DOWNLOAD PDF

---

Back